EXLSERVICE HOLDINGS INC (EXLS) Stock Fundamental Analysis
NASDAQ:EXLS - Nasdaq - US3020811044 - Common Stock - Currency: USD
Taking everything into account, EXLS scores 7 out of 10 in our fundamental rating. EXLS was compared to 82 industry peers in the IT Services industry. Both the health and profitability get an excellent rating, making EXLS a very profitable company, without any liquidiy or solvency issues. EXLS has a correct valuation and a medium growth rate. This makes EXLS very considerable for quality investing!
1. Profitability
1.1 Basic Checks
EXLS had positive earnings in the past year.
EXLS had a positive operating cash flow in the past year.
Each year in the past 5 years EXLS has been profitable.
In the past 5 years EXLS always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of EXLS (13.83%) is better than 95.12% of its industry peers.
Looking at the Return On Equity, with a value of 22.27%, EXLS belongs to the top of the industry, outperforming 86.59% of the companies in the same industry.
EXLS has a Return On Invested Capital of 16.03%. This is amongst the best in the industry. EXLS outperforms 87.80% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EXLS is significantly below the industry average of 22.80%.
The last Return On Invested Capital (16.03%) for EXLS is above the 3 year average (15.15%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.83% | ||
| ROE | 22.27% | ||
| ROIC | 16.03% |
ROA(3y)11.89%
ROA(5y)10.36%
ROE(3y)20.31%
ROE(5y)17.99%
ROIC(3y)15.15%
ROIC(5y)13.79%
1.3 Margins
The Profit Margin of EXLS (12.00%) is better than 86.59% of its industry peers.
EXLS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 15.25%, EXLS belongs to the top of the industry, outperforming 80.49% of the companies in the same industry.
EXLS's Operating Margin has improved in the last couple of years.
The Gross Margin of EXLS (38.05%) is comparable to the rest of the industry.
EXLS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.25% | ||
| PM (TTM) | 12% | ||
| GM | 38.05% |
OM growth 3Y0.91%
OM growth 5Y10.78%
PM growth 3Y1.78%
PM growth 5Y9.57%
GM growth 3Y-0.74%
GM growth 5Y2.1%
2. Health
2.1 Basic Checks
EXLS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, EXLS has less shares outstanding
Compared to 5 years ago, EXLS has less shares outstanding
The debt/assets ratio for EXLS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 9.67 indicates that EXLS is not in any danger for bankruptcy at the moment.
The Altman-Z score of EXLS (9.67) is better than 93.90% of its industry peers.
The Debt to FCF ratio of EXLS is 0.94, which is an excellent value as it means it would take EXLS, only 0.94 years of fcf income to pay off all of its debts.
EXLS's Debt to FCF ratio of 0.94 is amongst the best of the industry. EXLS outperforms 82.93% of its industry peers.
EXLS has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of EXLS (0.24) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 0.94 | ||
| Altman-Z | 9.67 |
ROIC/WACC1.64
WACC9.8%
2.3 Liquidity
EXLS has a Current Ratio of 3.15. This indicates that EXLS is financially healthy and has no problem in meeting its short term obligations.
EXLS's Current ratio of 3.15 is amongst the best of the industry. EXLS outperforms 85.37% of its industry peers.
A Quick Ratio of 3.15 indicates that EXLS has no problem at all paying its short term obligations.
EXLS's Quick ratio of 3.15 is amongst the best of the industry. EXLS outperforms 85.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.15 | ||
| Quick Ratio | 3.15 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 23.33% over the past year.
Measured over the past years, EXLS shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -11.63% on average per year.
Looking at the last year, EXLS shows a quite strong growth in Revenue. The Revenue has grown by 15.15% in the last year.
The Revenue has been growing by 13.15% on average over the past years. This is quite good.
EPS 1Y (TTM)23.33%
EPS 3Y-29.95%
EPS 5Y-11.63%
EPS Q2Q%22.5%
Revenue 1Y (TTM)15.15%
Revenue growth 3Y17.88%
Revenue growth 5Y13.15%
Sales Q2Q%14.74%
3.2 Future
Based on estimates for the next years, EXLS will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.19% on average per year.
The Revenue is expected to grow by 12.05% on average over the next years. This is quite good.
EPS Next Y15.25%
EPS Next 2Y14.7%
EPS Next 3Y14.19%
EPS Next 5YN/A
Revenue Next Year12.3%
Revenue Next 2Y11.86%
Revenue Next 3Y12.05%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 22.96, EXLS is valued on the expensive side.
EXLS's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of EXLS to the average of the S&P500 Index (27.03), we can say EXLS is valued inline with the index average.
With a Price/Forward Earnings ratio of 19.45, EXLS is valued on the expensive side.
EXLS's Price/Forward Earnings is on the same level as the industry average.
EXLS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.28, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.96 | ||
| Fwd PE | 19.45 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EXLS is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EXLS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.69 | ||
| EV/EBITDA | 18.38 |
4.3 Compensation for Growth
EXLS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of EXLS may justify a higher PE ratio.
A more expensive valuation may be justified as EXLS's earnings are expected to grow with 14.19% in the coming years.
PEG (NY)1.51
PEG (5Y)N/A
EPS Next 2Y14.7%
EPS Next 3Y14.19%
5. Dividend
5.1 Amount
No dividends for EXLS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
42.47
-0.1 (-0.23%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners99%
Inst Owner Change-0.57%
Ins Owners0.45%
Ins Owner Change5.35%
Market Cap6.86B
Analysts83.75
Price Target55.37 (30.37%)
Short Float %3.23%
Short Ratio2.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.19%
Min EPS beat(2)5.72%
Max EPS beat(2)6.65%
EPS beat(4)4
Avg EPS beat(4)5.39%
Min EPS beat(4)4.04%
Max EPS beat(4)6.65%
EPS beat(8)8
Avg EPS beat(8)4.27%
EPS beat(12)12
Avg EPS beat(12)4.73%
EPS beat(16)16
Avg EPS beat(16)6.15%
Revenue beat(2)1
Avg Revenue beat(2)-0.19%
Min Revenue beat(2)-0.57%
Max Revenue beat(2)0.18%
Revenue beat(4)2
Avg Revenue beat(4)-0.27%
Min Revenue beat(4)-0.79%
Max Revenue beat(4)0.18%
Revenue beat(8)3
Avg Revenue beat(8)-0.41%
Revenue beat(12)6
Avg Revenue beat(12)0.42%
Revenue beat(16)9
Avg Revenue beat(16)0.99%
PT rev (1m)-0.52%
PT rev (3m)1.39%
EPS NQ rev (1m)0.55%
EPS NQ rev (3m)1.11%
EPS NY rev (1m)0%
EPS NY rev (3m)0.15%
Revenue NQ rev (1m)0.32%
Revenue NQ rev (3m)0.5%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.96 | ||
| Fwd PE | 19.45 | ||
| P/S | 3.48 | ||
| P/FCF | 24.69 | ||
| P/OCF | 20.91 | ||
| P/B | 6.47 | ||
| P/tB | 11.48 | ||
| EV/EBITDA | 18.38 |
EPS(TTM)1.85
EY4.36%
EPS(NY)2.18
Fwd EY5.14%
FCF(TTM)1.72
FCFY4.05%
OCF(TTM)2.03
OCFY4.78%
SpS12.19
BVpS6.57
TBVpS3.7
PEG (NY)1.51
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.83% | ||
| ROE | 22.27% | ||
| ROCE | 20.9% | ||
| ROIC | 16.03% | ||
| ROICexc | 21.27% | ||
| ROICexgc | 37.17% | ||
| OM | 15.25% | ||
| PM (TTM) | 12% | ||
| GM | 38.05% | ||
| FCFM | 14.11% |
ROA(3y)11.89%
ROA(5y)10.36%
ROE(3y)20.31%
ROE(5y)17.99%
ROIC(3y)15.15%
ROIC(5y)13.79%
ROICexc(3y)20.61%
ROICexc(5y)20.14%
ROICexgc(3y)45.95%
ROICexgc(5y)N/A
ROCE(3y)19.75%
ROCE(5y)17.97%
ROICexcg growth 3YN/A
ROICexcg growth 5Y4.53%
ROICexc growth 3Y-6.9%
ROICexc growth 5Y14.65%
OM growth 3Y0.91%
OM growth 5Y10.78%
PM growth 3Y1.78%
PM growth 5Y9.57%
GM growth 3Y-0.74%
GM growth 5Y2.1%
F-Score9
Asset Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 0.94 | ||
| Debt/EBITDA | 0.71 | ||
| Cap/Depr | 87.2% | ||
| Cap/Sales | 2.55% | ||
| Interest Coverage | 15.9 | ||
| Cash Conversion | 91.68% | ||
| Profit Quality | 117.56% | ||
| Current Ratio | 3.15 | ||
| Quick Ratio | 3.15 | ||
| Altman-Z | 9.67 |
F-Score9
WACC9.8%
ROIC/WACC1.64
Cap/Depr(3y)89.55%
Cap/Depr(5y)85.41%
Cap/Sales(3y)2.98%
Cap/Sales(5y)3.33%
Profit Quality(3y)94.25%
Profit Quality(5y)118.13%
High Growth Momentum
Growth
EPS 1Y (TTM)23.33%
EPS 3Y-29.95%
EPS 5Y-11.63%
EPS Q2Q%22.5%
EPS Next Y15.25%
EPS Next 2Y14.7%
EPS Next 3Y14.19%
EPS Next 5YN/A
Revenue 1Y (TTM)15.15%
Revenue growth 3Y17.88%
Revenue growth 5Y13.15%
Sales Q2Q%14.74%
Revenue Next Year12.3%
Revenue Next 2Y11.86%
Revenue Next 3Y12.05%
Revenue Next 5YN/A
EBIT growth 1Y26.43%
EBIT growth 3Y18.96%
EBIT growth 5Y25.35%
EBIT Next Year31.69%
EBIT Next 3Y17.96%
EBIT Next 5YN/A
FCF growth 1Y112.23%
FCF growth 3Y14.72%
FCF growth 5Y11.62%
OCF growth 1Y85.69%
OCF growth 3Y13.35%
OCF growth 5Y9.78%